Israel's Harel Insurance Investments and Financial Services and Ashtrom Properties agreed to acquire from Deutsche Telekom an office complex in the centre of Leipzig for €29 million ($43.29 million).
At the same time they signed a contract to rent 96% percent of the complex to a wholly owned subsidiary of Deutsche Telekom until December 31, 2018 for €2.32 million a year, the companies said in a statement on Sunday.
The Israeli firms will acquire the property through a partnership they set up in which Ashtrom owns 51% and Harel 49%.
Ashtrom, a real estate company, said in a statement it will continue to cooperate with Harel in additional deals in Germany.
Harel is Israel's third largest insurer with an 18% market share. Last month two of its subsidiaries agreed to buy an office building in Clerkenwell, London for £11 million ($18.02 million).
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